


ONSOLIDATION OF FOREST LANDS IN OREGON 



HEARINGS 



BEFORE THE 



COMMITTEE ON AGRICULTURE 



^7. HOUSE OF REPRESENTATIVES 

SIXTY-FOURTH CONGRESS 

First Session 



on 



H. R. 13046 



FRIDAY, AUGUST 4, 1916 






WASHINGTON 
GOVERNMENT PRINTING OFFICE 

1916 






513 5<*k 
.ID 7** 



D. of D. 
SEP 9 1916 






CONSOLIDATION OF FOREST LANDS IN OREGON, 



Committee on Agriculture, 

House of Representatives, 

Friday, August 4-, 1916. 

The committee met at 10.30 o'clock a. in., Hon. Asbury F. Lever 
(chairman) presiding. 

The Chairman. The committee will come to order. Gentlemen, 
we have met this morning to take up again House bill 13046, a bill 
to consolidate certain forest lands in the Oregon National Forest, in 
the State of Oregon. By direction of the committee, I referred that 
bill to the Secretary of Agriculture for report and have this morning 
received his report. I will ask that the clerk read his report and that 
it be made a part of the record. 

(Said report follows.), 

Hon. A. F. Lever, 

House of Representatives . 

Dear Mr. Lever: Receipt Is acknowledged of your request for a report on bill H. R . 
13046 to consolidate certain forest lands in the Oregon National Forest, in the State of 
Oregon. It is understood that your committee also wishes a full explanation of the 
procedure followed in effecting such exchanges. 

This bill proposes that for the purpose of consolidating forest lands belonging to the 
United States within the Oregon National Forest, the Secretary of the Interior be 
authorized, upon the recommendation of the Secretary of Agriculture, to exchange 
upon the basis of equal value lands belonging to the United States in national forests in 
the State of Oregon for privately owned land lying within the exterior boundaries of 
the Oregon National Forest. Upon the consummation of any such exchange the lands 
deeded to the United States shall become parts of the Oregon National Forest. 

Section 2 of this measure apprpriates $6,000 for the purpose of carrying out the pro- 
visions of section 1. 

The immediate reason for suggesting the introduction of this bill was to make it pos- 
sible for the Federal Government to obtain conveyance of title to private lands in that 
part of the Oregon National Forest forming the original Bull Run Forest Reserve and 
embracing the source of the water supply of the city of Portland. 

The Bull Run Forest Reserve was established by proclamation of the Fresident, 
dated June 17, 1892, under authority of the act of March 3, 1891, entitled "An act to 
repeal timber culture laws, and for other purposes." 

In order to obtain full protection of the source of the water supply of the city. Con- 
gress passed the act of April 28, 1904 (33 Stat., 526). This act provides a penalty for 
trespass on these lands by anyone other than Government officers and certain officials 
of the State. In administering the Oregon National Forest this department has 
endeavored to carry out the clear intent of Congress to maintain the purity of the 
municipal water supply by preventing the use of the land within the Bull Run 
division in any way which might pollute the water. 

It appears, from the records of this department, that there were 21,422.11 acres held 
in private ownership within the Bull Run division of the Oregon National Forest. 
There were 10,706.47 acres of land within the grant to the O. & C. Railroad Co. The 
title to these lands has been revested in the United States under the provisions of sec- 
tion 1 of the act of June 9, 1916, Public, 86. This leaves 10,715.64 acres of privately 
owned land within the Bull Run division. Of this amount, however, 2,068.6 acres 
have been acquired by the city of Portland, leaving a total of 8 647.04 acres of land on 
this watershed not in public ownership. These lands are distributed among 25 
owners, the most extensive holdings being those of the Bridal Veil Lumber Co. (owning 



4 CONSOLIDATION OF FOEEST LANDS IN OEEGON. 

about 2,600 acres), the Crown California Fu-p & Taper Co. (owning about 800 acres). 
W. E. GoodfelJoAv (owning about 1,24.0 acres) while the balance is distributed in small 
lots ranging from -10 a' res upward. 

The officers of this department have been working in harmony with the municipal 
officials who have been endeavoring to ascertain the attitude of the owners of these 
private lands toward an exchange of their holdings within the Oregon National Forest 
for lands not on this drainage area. Most of these owners have expressed a willingness 
to consummate such an exchange. Some desire that the exchange shall be of lands of 
equal value, while others have indicated a preference for selecting national forest 
timber of equal value to the lands reconveyed. 

Considering the purpose for which the Bull Run Forest Reserve was established, and 
the present administration of this area to protect the municipal water supply of the 
city of Portland, this department would approved of eliminating the titles held in 
private ownership. Since some of those desiring to exchange would prefer timber to 
lands your committee may wish to insert the word "land" in line 8, page 1 of the bill, 
the words "or timber." This recommendation has already been submitted to the 
Senate Committee on Agriculture which has under consideration bill S. 5515, the terms 
of which are identical with those of the measure before your committee. 

The desirability of obtaining public control of all the lands embraced in this water- 
shed requires little explanation or argument. The lands are all heavily timbered and 
if left in private ownership this timber will ultimately be cut and the slashings left 
without protection from fire. It is desirable to maintain the uniformity of the forest 
cover in order to regulate the water flow and maintain a supply at full volume and 
highest palatability . In addition, it is desirable to exclude human habitations and all 
domestic animals from the area in order the protect the water from danger of pollution. 
The security of the health of 300,000 people, whose lives might be menaced by the 
pollution of their drinking water at its source, far outweighs consideration of volume 
of supply or the immediate utilization of the relatively small amount of timber in- 
volved. Unquestionably, the highest use to which this land may be put is that of 
furnishing a pure supply of water for human consumption. 

The general features of this measure have a great many legislative precedents. 
General exchange bills for the following national forests have already received legis- 
lative sanction: Kansas National Forest, Paulina National Forest, Ochoco National 
Forest, and Florida National Forest. In addition, a number of special exchanges 
have been authorized by Congress. At the present time there is pending before the 
House a measure authorizing the exchange of Government timber for privately owned 
land in the Whitman National Forest, which measure has been favorably reported by 
the Public Lands Committee of the House; and, finally, the Senate has passed a gen- 
eral measure authorizing exchanges of this nature involving privately owned land in 
any of the national forests in the United States. 

Some inquiries have been made regarding the procedure followed by the Forest 
Service in consummating exchanges of this nature, after legislative authority is 
granted. The initial step will be for the private owner to submit an application, 
expressing his willingness to effect an exchange, giving a description of his privately 
owned land by legal subdivisions and stating the area of Government land which he 
desires to select in exchange. A preliminary report is made by the forest supervisor, 
or by his deputy or a forest examiner under his direction, and if from this report it 
appears that such an exchange would not be in the interests of the public, even in 
the event that the values are found to be equal, the application is rejected and the 
applicant is advised of the reason it is not considered desirable to consummate the 
exchange. The applicant may then amend his application by applying for Govern- 
ment land so located or of such a character that an exchange would be in the public 
interest. If the supervisor's report upon the amended application indicates that the 
exchange would be desirable, the district forester then directs that a valuation survey 
be made covering the private land offered in exchange and the Government land 
applied for. 

Such a survey requires the accurate location of the land, a careful cruise of the tim- 
ber, and the preparation of a topographic map and descriptive report. The report 
must show by legal subdivisions the amount, character, and sale value of merchant- 
able saw timber by species, the amount of cordwood material, and the amount, age, 
character, and condition of reproduction, elevation, and character of the topography, 
and character of soil. It must show the value of the timber by thousand feet board 
measure, the value of the cordwood per cord, and the desirability of the young 
species from a silvicultural standpoint. It must also show the general productive 
capacity of the land as a timber-producing area, together with the favorable or unfavor- 
able characteristics of topography or location which may affect valuations. In the 
report upon the privately owned land offered in exchange, the valuation survey will 



CONSOLIDATION OF FOREST LANDS IN OEEGON. 5 

ahow what administrative or other public advantages will be gained by the proposed 
transfer, what obstructions to efficient protection and utilization will be removed by 
such a consolidation, together with the objectionable features to the exchange itself, 
if any appear. 

Conversely, the report upon the Government land applied for in exchange will 
cover the same points, which report contains a final summation of values, together 
with final recommendations. The final recommendation is not necessarily a "yes" 
or "no" decision upon the applications, but is usually a constructive solution of the 
exchange problem, the recommendation stating that certain enumerated subdivisions 
of Government land applied for have been found to be of equal value to the privately 
owned land offered in exchange, that an exchange upon such a basis would be desir- 
able, and that the applicant should be advised that his application must be rejected 
as to the remaining areas before a favorable consideration will be given to an exchange. 

Where the area involved is small and the work can be done with the regular force 
without additional assistance, the valuation survey is usually made by the forest su- 
pervisor, a deputy supervisor, or forest examiner, all experienced men. This report 
must receive the approval of the forest supervisor and is then transmitted to the dis- 
trict office where it is checked by the logging engineer and the assistant district forester 
in charge of timber sales. If the values are considerable, or these officers are not per- 
sonally familiar with the region, a field check will be ordered before the exchange re- 
change receives the approval of the district forester. This check will be made prefer- 
ably by the logging engineer assigned to that district, or some other lumbermen or 
cruisers of known skill and integrity. All large exchanges are handled more directly 
from the office of the district forester. The cruisers are specialists attached to the 
district organization, and all estimates are checked for the accuracy of the cruise and 
valuations either by the logging engineer or one of his assistants. 

If the exchange receives the final approval of the district forester, the entire record, 
including the maps and reports, is transmitted to the Forester at Washington, D. C. 
Here they are again carefully checked by the four administrative branches of silver- 
culture, operation, lands, and grazing, and if approved by them and the Forester, the 
entire record is then transmitted to my office with a draft of a letter to the Secretary 
of the Interior recommending that he accept reconveyance of the certain described 
privately owned lands, provided satisfactory title be shown, and that in lieu thereof 
certain other described Government lands which have been examined by this depart- 
ment and found to be of equal value to the reconveyed lands be patented to the appli- 
cant. 

The Department of the Interior passes upon the sufficiency of title before such recon- 
veyance is accepted. Upon the acceptance of reconveyance, patent is issued to the 
area selected, all parties are notified and the exchange is complete and permanent. 

Tbis department has uniformly favored exchanges upon the basis of equal value 
. >/• a ;uch exchanges would be desirable from a public standpoint. In land exchange 
L^.pij.iculs due weight has uniformly been given to the amount and character of tim- 
ber, the character and productive quality of the land, together with its location and 
the surroundings influencing the value of its production. But we have not placed 
a valuation upon the removal of an administrative interference, nor have we allowed 
the private owner to capitalize the dangers of a public menace. It has been the 
belief of this department that neither the Government nor the private owner can 
advantageously capitalize the inconvenience resulting to either party because of the 
presence of land owned by the other. Such inconvenience is not a "value" to be 
expressed in terms of dollars and cents, but is instead an injury to be avoided, and is, 
in fact, the very element which induces both parties to desire an exchange. Usually 
the inconvenience to one party is as great as the inconvenience to the other, but even 
when one party is very materially the sufferer, no attempt has been made to equalize 
the situation by placing an increased money value upon the lands of the other. 

In accordance with this policy, the department has not considered the influence 
of a tract of land upon the desirability of a watershed as a "value" which might be 
advantageously capitalized in considering a land exchange, although it may have 
important public consideration which justifies the exchange. Such influence is an 
element from which the private owner himself could never realize the slightest direct 
monetary return. The presence of a typhoid patient on a tract of privately owned 
land within the watershed utilized by a municipality might result in incalculable 
injury to the public, but by no possible means could it result in profit to the individual 
owner. The presence of slash on logged-off private land intermingled with stands of 
valuable Government timber might result in grave injury to public property, but 
that injury could not result in profit to the individual, and therefore the danger of 
that injury should not be capitalized in considering the value of such private holdings. 



6 CONSOLIDATION OF FOREST LANDS IN OREGON. 

Accordingly, for the purposes of land exchange appraisals, this department has con- 
sidered only such elements as actually enter into commercial transferable values. 
To attempt to include more intangible factors might not only lead us into absurdities, 
but might even result in the equivalent of public blackmail. Nor has it been neces- 
sary to take such factors into consideration in order to effect exchanges advantageous 
to the private owner as well as to the public. Such consolidations usually result in 
increased value to both parties and are consequently mutually profitable. 

The department therefore recommends that this measure receive your favorable 
consideration. 

Very truly, yours, 

D. F. Houston, Secretary. 

Trie Chairman. We have present this morning gentlemen from the 
Forest Service, and if any member of the committee desires to ask any 
questions of these gentlemen he may do so. I will ask Mr. Potter to 
answer such questions as may be asked or have his associates do so. 

Mr. Anderson. I would like to ask one question. 

The Chairman. All right. 

STATEMENT OF ME. ALBERT F. POTTEE, ASSOCIATE 
FOEESTEE, DEPAETMEISTT OF AGEICULTUEE. 

Mr. Anderson. How will these exchanges be effected where an 
exchange is proposed of timber for land and timber ? 

Mr. Potter. That would always be in a case where the land and 
timber were owned by a private party who desired to exchange them 
for Government timber. In that event a valuation would be placed 
upon the land separate from the timber. For example, if the land 
only had a value for timber production the base value might be con- 
sidered to be $3 an acre; if it also had a value for grazing the base 
value might be considered to be $5 an acre, and if it had a value for 
farming the base value would probably be considered to be as high 
as $10 an acre. That value would be added to the appraised value of 
the timber in accordance with the number of thousand feet that were 
upon the land. Then the sum of those two values would be equalized 
by a body of timber on Government land which had in itself a value 
equal to the value of the combined land and timber values on the 
private lands. 

In the exchanges which are pending with the States of Idaho, 
Montana and Washington we have found, in all three instances, that 
the States desired to select, as land which will be retained by the 
States, an area which has an average timber stand greater than the 
stand of timber on their scattered sixteens and thirty-sixes, and in 
order to bring about those exchanges it will be necessary for us to 
allow the States to take, for example, in exchange for 250,000 acres 
of school lands a tract of 150,000 acres of timberland, which 150,000 
acres will contain as much timber as there is on the entire 250,000 
acres of State lands. Then the State will take 100,000 acres of non- 
timbered land, which will equalize the value. So that the State, on 
the whole, will get the same amount of timber and will give the same 
acreage of land that it gets, but the timber land that it gets will 
average higher in value than the timber land that it gives, although 
the total value of both the land and timber will be the same. We will 
have to adjust all three of those State exchanges in that way, that is, 
by giving them an area of timber land which will carry a heavier 
stand per acre than the average on the State lands, and then equalize 



CONSOLIDATION OF FOREST LANDS IN OREGON. 7 

it by getting them to take the residue in nontimbered land, which 
would only have a base value. 

Mr. Haugen. Are the differences in value always adjusted ? 

Mr. Potter. They are always adjusted through a selection of land 
which, as a whole, would be equal in value. 

Mr. Haugen. For instance, one section is to be exchanged for 
another section, and there could be a thousand dollars difference in 
value. In that event, how is that adjusted — simply by finding- 
some more land ? 

Mr. Potter. No; the exchange, in that event, would not be made 
unless the values were approximately equal. 

Mr. Hawley. And unless the party who wanted to make the 
exchange was willing to take a less acreage ? 

Mr. Potter. Yes, sir. 

Mr. Helgesen. For the purpose of illustration, let us take a cut- 
over piece of land. In most instances, such a piece of land is prac- 
tically valueless, is it not ? 

Mr. Potter. It only has what we call a base value; it would not 
be worth, probably, over $2 or $3 an acre — that is, if it is only suitable 
for timber. If it is suitable for farming, then it would have a higher 
value. 

Mr. Helgesen. If you trade for a cut-over piece of land and pay 
for it in Government timber, then the Government will be getting 
that cut-over piece of land instead of valuable timber, will it not ? 

Mr. Potter. Yes; it would, and the kind of a trade that would be 
made in that event would be that if we placed a base value of $2 an 
acre on a section of land of that kind it would mean that we consid- 
ered that section worth $1,280 for the purpose of growing timber, and 
we would give for such a section $1,280 worth of timber upon its ap- 
praised stumpage value. 

Mr. Helgesen. That is a very nice proposition for a private owner 
who wants to dispose of that kind of land, but I do not see wherein 
the Government gets any particular value. 

Mr. Potter. It gets value by getting land that is suitable for the 
production of timber, and on which it can afford to raise timber. 

Mr. Steele. Your object is to solidify it? 

Mr. Potter. Yes; and it also solidifies the ownership so that it 
simplifies administration by the Government. 

Mr. Hawley. But that particular question would not come up in 
this proposed exchange. The only object here is to eliminate private 
owners from the watershed of a great city's water supply. That is 
the purpose of this bill, to prevent contamination of a great city's 
water supply and to protect the health of the city by eliminating 
private ownership from about 8,600 acres in the Bull Run water- 
shed and giving them lands outside of that watershed. It is prac- 
tically the same kind of country all through there. 

Mr. Steele. From your statement it would appear that your ans- 
wer was that you are trading for cut-over lands and giving timber- 
lands in exchange; but that is not true unless it is beneficial to the 
Government. 

Mr. Potter. No, sir; not unless it is beneficial to the Government. 
As a rule, the majority of the land is not of that character, although 
sometimes there are tracts of cut-over lands included in the exchanges. 
That, of course, is bound to happen in our exchanges with the States, 



8 CONSOLIDATION OF FOEEST LANDS IN OEEGON. 

because some of the school lands have been cut over. In that event 
we must only consider the base value — that is, what the land itself 
is worth — -and give the State that value in return. 

Mr. Helgesen. Is it anticipated that there would be any such 
exchanges under this particular bill ? 

Mr. Potter. It would be possible to make such an exchange under 
the wording of the bill; yes, sir. 

Mr. Anderson. Under the wording of the bill as it was introduced? 

Mr. Potter. Yes, sir. 

Mr. Haugen. In exchanging a one-half section for another half 
section, suppose it were found that the section in the forest owned by 
the Government is worth, say, $1,000 more than the other half-section, 
how are you going to adjust that difference ? 

Mr. Potter. We can adjust that difference only by adding a few 
acres. 

Mr. Haugen. By adding a few sections ? 

Mr. Potter. By adding a few acres to the tract. 

Mr. Haugen. And thus making up the difference? 

Mr. Potter. Yes. 

Mr. Haugen. And only in that way can it be adjusted? 

Mr. Potter. Yes. That is one of the reasons for suggesting that 
possibly the committee would desire to include the words " or timber," 
so that in the event the land values were different we might adjust 
them with timber without having a difference in the acreage. 

Mr. Haugen. In adjusting or appraising the values of these lands 
are the interests of the Government safeguarded in every instance ? 

Mr. Potter. Yes, sir. We only consider exchanges when it will 
be advantageous to the Government to make them; we have never 
favored exchanges that were to be made merely for the convenience 
of the private owner, but it is always when we consider that it will 
be a benefit to the public. In this case, of course, it will be of special 
benefit to the city of Portland. 

Mr. Anderson. I understand that that is the first question to 
determine, that if it is not determined that the exchange is advan- 
tageous in the first instance the proposition does not go any further. 

Mr. Potter. We would not consider it at all. 

Mr. Haugen. Now with reference to the cruises. How are the 
cruisers appointed ? 

Mr. Potter. Mr. Chairman, I would like very much to have you 
hear Mr. Greeley as to how the cruises are made, as well as the 
appraisals. That work is under Mr. Greeley's direction, and I know 
that he can answer the questions asked in reference to every detail. 

STATEMENT OF MR. W. B. GREELEY, ASSISTANT FORESTER, 

IN CHARGE OF SILVICULTURE, DEPARTMENT OF ASGI- 
CULTURE. 

Mr. Haugen. I would like to have you make it clear that the 
interests of the Government are safeguarded in every move made. 

Mr. Greeley. These cruises are made, in the first instance, by- 
experienced woodsmen who have had from six to eight years practical 
experience in the identical region. Their cruises are checked by 
lumbermen who are all men of practical experience in lumbering and 
wood estimating in the several regions, and who are the most compe- 
tent men in our organization. 



CONSOLIDATION OF FOREST LANDS IX OREGON". 9 

Mr. Anderson. Let me ask you a question, because I want to get 
this clear in my mind. When you speak of cruisers do you mean 
men who are regularly and permanently employed by the Govern- 
ment ? 

Mr. Greeley. In nearly every case; yes, sir. They are permanent 
employees. 

Mr. Anderson. When you speak of lumbermen what do you 
mean ? 

Mr. Greeley. The lumbermen are also permanent employees of the 
Forest Service. They are engaged on that class of work and selected 
for their capacity in that particular line. For example, in this par- 
ticular region 

Mr. Haugen (interposing). How is their capacity for this work 
determined ? 

Mr. Greeley. They are selected, in the first instance, through 
competitive examination; then they are tried out, and if they make 
good they are assigned to that class of work. Then they build up 
through continued experience. 

Mr. Hawley. The parties you have out there appraising timber 
have the benefit of practical experience hi that section of the country 
all the time ? 

Mr. Greeley. Yes, sir. In this instance in Oregon, for example, 
we have a lumberman who has had some 15 years of practical exper- 
ience in the lumber industry in that region and who has been in our 
employ for upward of 12 years. He is one of the most competent 
lumbermen hi that region. A check is always required on every 
exchange about which there is the slightest question, a personal 
examination and check of both the quantity of timber and of the 
value placed upon it. 

The Chairman. Is there anything further, gentlemen'? 

Mr. Haugen. I think the letter from the department explains 
the matter very well. 

Mr. Greeley. I would like to suggest, Mr. Chairman, that I have 
here a copy of an appraisal made of a tract of timber which happens 
to adjoin the Bull Run watershed, which will indicate to the com- 
mittee, if you care to incorporate it in the record, just how the values 
are arrived at. It will show the detail into which our lumbermen 
go in determining the value of timber. 

The Chairman. What about that, gentlemen? 

Mr. Reilly. You follow the usual practice, do you not ? 

Mr. Greeley. Yes, sir. 

Mr. Haugen. Are there any water powers on any of these lands? 

Mr. Greeley. I do not know as to that. 

Mr. Hawley. If there are, they would be acquired by the Gov- 
ernment, because most of those that would be exchanged are on the 
watershed, where the streams are only trickling ones, and the Gov- 
ernment would get them where the streams have become of more 
size. 

Mr. Greeley. I think that is the case, although I am not familiar 
with this particular section. 

The Chairman. Suppose you leave that with the committee. 

Mr. Haugen. How many exchanges are contemplated under this 
bill? 

Mr. Greeley. There is just the single proposition involved of the 
holdings of several parties in the Bull Run watershed. 



10 CONSOLIDATION OF FOREST LANDS IN OEEGON. 

Mr. Haitgen. That takes in the 8,000 acres and 11,000 acres? 

Mr. Greeley. I understand so; yes, sir. 

Mr. Haugen. About 8,000 acres owned by individuals, 2,000 acres 
by the city of Portland, and the Government owns about 11,000 
acres, I believe the letter states. 

Mr. Greeley. The exchange would cover only the 8,000 acres 
owned by individuals and not that owned by the city of Portland. 

The Chairman. Is there anything further, gentlemen ? 

Mr. Haugen. Is it necessary to go to that extent ? 

Mr. Greeley. I do not understand you. 

Mr. Haugen. Is it necessary to make all of those exchanges ? 

Mr. Greeley. It is necessary to acquire all of those tracts in order 
to place the whole watershed under proper supervision. 

Mr. Haugen. It was stated the other day that a half section, or 
possibly one or two more sections added to the half section, was all 
that would be required or all that was contemplated. 

Mr. Hawley. That was what was to be immediately done because 
of the logging operations. 

Mr. Briggs. I intended to make it plain the other day that the half 
section was the only one in which I was interested. I did not mean to 
infer that the Forest Service did not wish to get other owners as 
well as ourselves out of the reserve. As far as the city is concerned, 
the water commissioner told me before I left home that he was very 
anxious to eliminate all private owners within the reserve. There 
have been times when hunters, berry pickers, and so on, have gone 
into the reserve and claimed that they had the right to go in there 
because of ownership or permission from owners. He said they 
wanted to eliminate any possible excuse for anybody going within 
the limits of the reserve- 
Mr. Helgesen. Is it contemplated to take over the 2,000 acres 
owned by the city of Portland ? 

Mr. Hawley. Oh, no. 

The Chairman. I would suggest that we print the memorandum 
that Mr. Greeley has presented to us. It will give us an idea how 
these exchanges are made. Without objection that will be done. 

(Said memorandum follows:) 

Sales, West Fork of Hood River Area, Oregon. 

[Report and appraisal by W. T. Andrews and L. A. Nelson, June 1, 1916.] 
DESCRIPTION. 

The tract of timber covered by this report and appraisal lies on the watershed of 
the West Fork of Hood River and tributaries, Ladd, McGee, Elk, and Jones Creeks, 
Oregon National Forest, Oregon. The area is reached by wagon road and trail from 
Dee, Oreg., a station on the Mount Hood Railway, 12 miles south of the town of Hood 
River, Oreg., on the O. W. R. & N. Railway. Automobiles can be used a portion of 
the year for a distance of 6 miles out of Dee; for the remaining 3 miles to the trail it 
is possible to use wagons. The wagon road continues on to Lost Lake, but it is in 
very poor condition for wagon traffic. The trail to and through the area is well con- 
structed on a maximum 5 per cent grade. There is a Forest-Service telephone line 
along this trail in sees. 23 and 35, T. 1 S., R. 8 E., Willamette meridian, of the pro- 
posed sale area. 

A portion of the West Fork of Hood River watershed is in the Bull Run Reserve, 
which was created for the purpose of protecting the water supply of the city of Port- 
land, Oreg. The sections in the reserve bordering on the sale area are sees. 1, 2, and 
3, T. 2 S., R. 8 E., and sees. 22, 27, and 34, T. 1 S., R. 8 E., Willamette meridian. 
The water supply of Portland is obtained from Bull Run River and tributaries. 
There is a hiQ-h divide between the Bull R.un and West Fork Hood River watershed. 



CONSOLIDATION OF FOREST LANDS IN OREGON. 



11 



The west boundary of the sale area is from one-half to 2 miles from the summit of 
this divide. The drainage on the sale area is away from the Bull Run watershed, 
therefore the logging of the timber can in no way affect the water supply of the city 
of Portland. 

The total area of the West Fork Hood River drainage within the forest boundary 
is 18,780 acres, made up of the following: 

Acres. 

Patented land ' 1, 960 

Sale area 7, 340 

Protection forest 9, 480 

The sale area comprises all of sees. 1, 2, 11, 12, 14, 23, 26, and 35 and portions of 
sees. 13 and 36, T. 1 S., R. 8 J E., Willamette meridian, unsurveyed, all of sec. 6 and 
portions of sees. 5 and 7, T. 1 S., R. 9 E., Willamette meridian, unsurveyed, all of 
sec. 23 and portions of sees. 13, 14, 24, 25, 26, 35, and 36, T. 1 S., R. 8 E., Willamette 
meridian, surveyed, a total area of approximately 7,340 acres. 

The amount of timber estimated to be on the sale area, by species, and the total 
amount is as follows : 



Douglas fir 

Western white pine 

Noble fir 

Western red cedar . 
Western hemlock . . 
Amabilis fir 

Total 



M feet 

board 

measure. 



258, 000 

4,000 

6,000 

9, 000 

63,000 

20, 000 



360, 000 



71.7 
1.1 
1.6 
2.5 

17.5 
5.6 



100.0 



Old cuttings. — There are no old cuttings within the boundaries of the area. 
. Private interests. — There are no private interests within the boundaries of the pro- 
posed sale area. Portions of sees. 13, 24, 25, 26, 35, and 36, T. 1 S., R. 8 E., Willamette 
meridian, totaling 1,960 acres are patented. A portion of this land is owned by the 
Oregon Lumber Co. and the rest by individuals. Practically all of the above land 
lies along the main streams, seldom going up the slopes any distance. The stand of 
timber is of a better quality than on the forest. It is estimated the stand of timber on 
this area is 120,000,000 feet b. m. There would seem to be a favorable opportunity 
for a blocking of lands here possibly by the exchange of stumpage for land if the com- 
pany later acquires the private lands within the forest. 

Timber considered in the appraisal. — It is estimated that there is approximately 
1,000,000,000 feet of merchantable timber on the West Fork of Hood River and tribu- 
taries that will come out over the main line railroad. The estimated amount of timber, 
private and national forest, embraced in this appraisal is 480,000,000 feet b. m. In the 
portion of T. 1 S., R. 8 E. not included in the contemplated sale the amount of mer- 
chantable national forest timber is 90,000,000 feet, and on patented land there is 
70,000,000 feet. The merchantable timber in T. 1 W, R. 8 E. on the national forest 
is approximately 260,000,000 feet. Outside of the forest it is estimated that there is 
approximately 100,000,000 feet. 

This totals as follows in thousand feet board measure: 



Area. 


National 
forest 
timber 
in sale. 


Adjacent 

national 

forest 

timber not 

in sale. 


Private 
timber 
considered 
in ap- 
praisal. 


Adjacent 
Private 
timber not 
considered 
in ap- 
praisal. 


Total. 


T. 1 S.,Rs. 8E., 8£E.,9E 


360. 000 




120, 000 


70, 000 


480, 000 


T- 1 S., R. 8E....T 


90, 000 
260, 000 


160, 000 


T. 1 N., R. 8 E 






260, 000 








100, 000 


100, 000 










Total 


360, 000 


350, 000 


120, 000 


170, 000 


1, 000, 000 





12 CONSOLIDATION OF FOREST LANDS IN OEEGON. 

Soil. — The soil on the area is a shallow, sandy loam. A few cases occur where it 
is from 1 to 1| feet deep. Frequently it is almost entirely replaced by broken rock, 
this latter condition being an important consideration in determining the agricul- 
tural value. The poor quality of the silo and the steepness of the slope make the area 
unsuited for agricultural purposes. 

Reproduction. — The reproduction on the area containing merchantable timber is 
an understory of western hemlock, amabilis fir, and western red cedar, with a small 
percentage of Douglas fir. For restocking the area it has no value, and no effort 
should be made to protect it during logging operations. The burned areas within the 
sale boundary have restocked fully with Douglas fir, western hemlock, western red 
cedar, western white pine, and amabilis fir, the first species mentioned predominat- 
ing. These areas should be protected during logging operations. 

Character of forest. — Although this area is east of the Cascade Mountains, it is dis- 
tinctly west-side type, consisting of Douglas fir, western hemlock, amabilis fir, west- 
ern red cedar, noble fir, and western white pine, named in the order of their impor- 
tance. The area is situated in a bit of country lying on the eastern extremity of the 
humid coast region and in the central portion of the Cascade Mountain Piange. There- 
fore the climate is neither humid nor arid. 

Douglas fir. — This species comprises 71.7 per cent of the total stand on the sale area. 
The character and condition of the stand within the sale boundary are those of a 
mature, even-aged, irregular in tree diameter and quality and above normal in sound- 
ness. The typing of the map is, perhaps, misleading in defining of age classes. While 
there is a wide difference in tree sizes, conservative judgment would define the stand 
jas above. The green timber is unusually sound, in a comparative way, scarcely any 
trees being totally defective from fungous diseases. It is noted, however, that there 
is an enormous amount of dead Douglas fir occurring in groups and singles in a more 
or less regular manner throughout the entire area. This serioiis deterioration is 
ascribed to two causes, viz, first, it is believed that climatic conditions is the principal 
one. From November until May there is an almost incessant fall of rain or snow, 
while the months of June, July, August, and September are very hot and dry. The 
second contributing factor is probably poor soil. Where the snow had disappeared it 
was noted that the surface was very rocky with a mixture of nonporous clay. 

It appears that the timber grows very rapidly for about 100 years, lessening greatly 
with an increased age . There does not appear to be many trees in a suppressed or dying 
condition, leading to the assumption that deterioration takes place quickly. It is 
clear that the timber is on the decline in quantity and gaining nothing in quality. 

On a numerical basis the stand is about normal. The heaviest stand on this basis 
occurs in sections 5 and 6. Here the normal maximum diameter is 34 inches; the 
trees are tail, straight, with few limbs, but knotty down to the base. On the lower 
elevations the trees are fewer per acre, larger, and of a better quality. A similar 
stand, on a numerical basis, in the Pacific coast region, would grade much higher in 
quality. The timber on the tract under consideration appears to hold Itj limbs pe 1 • 
sistently. It is true that from a casual observation the boles of the trees appear to 
be clean, but a close inspection reveals small dry limbs and pin knots. 

Amabilis fir. — The amabilis fir stand is confined mostly to the higher elevations in 
nearly pure stands along the south and west sides of the sale boundary and in an 
irregular manner over other portions of the area. The trees are tall and shapely, but 
knotty and for the most part defective. 

These species are similar in quality and texture and are suitable for boxes and light 
dimension. 

Western hemlock. — Western hemlock, comprising 17.5 per cent of the estimated 
stand, occurs over the entire area in mixture with the other species. In places it is 
found in nearly pure stands. In portions of the area it is of a good size and quality, 
but as a rule it is rough and defective and will only cut into the lower grades of lumber. 

Western red cedar. — The quality of this species averages very low. Here and there 
there are small groups of and single trees having a short surface-clear log or a surface- 
clear side which would qualify as either good shingle timber or produce a fair per- 
centage of clear lumber. On the whole, however, the timber is knotty, coarse 
grained, and much of it small. While no doubt the timber would produce a fair 
amount of shingles of the Star grade, it is not believed that this product could meet 
the competition of the shingles manufactured in the State of Washington. 

Noble fir. — This species is tall, shapely, and of good quality, but forming only 1.6 
per cent of the stand. It occurs in small bunches generally in the southern portion 
of the area. 

Western white pine. — The small amount of white pine occurs in a scattered manner 
over the entire area. Tree diameter and quality cover a wide range. There are 
many fine specimens, 36 to 40 inches in diameter, apparently in a good state of preserva- 



CONSOLIDATION OF FOREST LANDS IX OREGON. 13 

tion. On the other hand there are groups of small, short trees 10 to 1 6 inches in diameter 
occurring mostly on exposed points, in a dying or decadent condition. In one such 
place more than one-half of the stand is dead. 

Types within west Hood River watershed. — In order to discuss the types of this region 
to better advantage the area will be divided into two parts, that within and without 
the sale boundary but in the watershed. Within the sale boundary are found all the 
age classes of the Douglas fir type, western hemlock, mountain hemlock, fir and cedar 
types. 

The Douglas fir type comprises practically the entire area within the sale boundary. 
The two types designated in the map as the older age classes are of most importance in 
point of area covered and stand of timber represented. This fact still holds true when 
the patented land is not considered. Trees between 20 and 48 inches in diameter 
have a merchantable length ranging from 70 to 150 feet. The younger age classes 
are to be found where fire has destroyed the original stand, but these areas are not of 
great importance. 

In mixture with this type are found western hemlock, western white pine, cedar, 
and noble fir, in order of their importance. These species form, with a few exceptions, 
the second story of the forest, and as a rule do not attain a large size nor form a large 
factor in the stand. 

Although considerable western hemlock is scattered over the entire area, in a few 
cases it is prominent enough to form a type by itself, but the extent of this type is 
of minor importance. The timber in its own type does not attain a large size; it is 
limby and rough. The better class of hemlock is found in the Douglas fir type. 
This is especially true when it occurs even-aged with Douglas fir and has been thrifty 
enough to keep up with it and form a part of the main stand. On the whole the 
quality is poor. 

The fir type occurs in the southwestern part of the sale, on the higher elevations. 
The chief species in this type are amabilis fir and noble fir, both of them attaining 
commercial size. The noble fir is the better of the two, growing tall, straight, and 
clean, and usually of good quality. The amabilis fir is more limby, even when it 
attains its best development. 

The mountain hemlock is almost of negligible area within the sale. The timber is 
of no commercial value and of very poor quality. 

Western red cedar type has an extent of a few acres. The timber is of medium 
quality. 

The types outside and east of the sale boundary are very similar in character to 
those within, but differ considerably in extent of their area. Here the mountain hem- 
lock and western hemlock types attain their greatest development. The younger 
age classes of Douglas fir and the true fir type are also represented. The species in 
these types are generally poorly developed, limby, and altogether a very poor quality, 
with no commercial value. 

The area south of the sale boundary is within the Bull Run division of the Oregon 
National Forest. Since this area has been set apart to protect the water supply of 
the city of Portland, it can not be logged. The timber soon runs into undesirable 
species, which are neither commercial in size nor quality. 

For 3 miles on the west the sale boundary and the boundary of the Bull Run divi- 
sion are the same. The timber in this portion of the Bull Run division and along 
the west boundary of the sale is of good quality. It is composed very largely of 
amabilis fir, noble fir, and second-growth Douglas fir. 

From the southeast corner of section 15 the boundary runs in a general northeast 
direction until it reaches the base line. Along this boundary one finds either the 
ends of long fingers of timber extending up the mountain side from the stand lower 
down, or a deforested (burned) area which is restocking with Douglas fir, but nothing 
of commercial value. 

Topography . — The proposed sale area is in a mountainous region. In one place 
the west boundary is one-half mile east of the summit of the Cascade Range. Mount 
Hood, an extinct volcano reaching an elevation of 11,225 feet, is 5 miles southeast 
of the south boundary. This region has been the scene of a great deal of volcanic 
activity, as evidenced by the tilted and twisted condition of the rock formation. 
The country has been covered by lava flows from Mount Hood which have been 
planed down by glacial action, fragments of these glaciers still clinging to the slopes 
of the mountain. Ladd Creek, one of the streams on the area, has its source in a 
glacier of the same name 3 miles southeast of the south boundary. 

The topography within the boundary of the sale area can be classed as steep and 
rough. Along the main streams in the lower portions of the watershed south of the 
forest boundary there is a considerable amount of bottom and bench land, the greater 
portion of which is patented. The portion of the watershed within the sale boundaries 



14 CONSOLIDATION OF FOREST LANDS IN OREGON. 

is practically all on the slopes, which, are steep and broken. Numerous rock slides, 
cliffs, and rock outcrops occur in some places, the slides covering 20 to 50 acres. The 
streams on the sale area are as a rule small and with a heavy fall, the slopes rising di- 
directly from the stream beds and as a rule are steep, in some places occurring as can- 
yons. These rocky areas and streams make railroad construction and logging opera- 
tions difficult. The West Fork of Hood River and main tributaries do not affect the 
sale area to any extent, as their course is for the greater part through patented lands. 
The beds of the streams are rocky; there are no falls, but rapids are numerous. The 
gradient along tributary streams is too great to permit the construction of railroads 
lip their valleys. A detailed description of the topographic features of the area is un- 
necessary, as the accompanying map shows it better than a description could give it. 

Accessibility. — The Oregon Lumber Co. operates a sawmill, with a capacity of 
30,000,000 feet b. m. per annum, at Dee, a station on the Mount Hood Railway, which 
is owned by the same interests that own the mill. Dee is 12 miles distant from Hood 
River, a station 64 miles east of Portland, Oreg., on the O.-W. R. & N. Co. transconti- 
nental line. The log supply for the mill during the past season has been obtained 
from the logging camp operated by the company in the West Fork of Hood River 
Valley, 5J miles southwest of the mill. The north boundary of the proposed area is 
approximately 3 miles southwest of the logging camp; therefore the sale area is 8 J 
miles from the sawmill where the timber under consideration -will be manufactured. 

The discussion of freight rates is a complicated matter, as there are so many variables 
The freight rate on lumber from Hood River, Oreg., to Chicago is 53 cents per 100 
pounds; the coast rate is 55 cents; the Dee rate is the same as the coast. The coast 
rate to Denver is 40 cents, the Dee rate 36 cents, the Hood River rate 34 cents. To 
the Salt Lake market the Dee rate is 1J cents less than the coast rate. The coast 
rate to Omaha is 50 cents, the Dee rate is the same, the Hood River rate is 48 cents. 
This then puts Dee on the same basis as the coast mills to the markets outside of 
Denver and Salt Lake market, while Hood River has the advantage over the coast 
rate of from 2 to 6 cents per 100 pounds. The local rate from Dee to Hood River is 
5 cents per 100 pounds; on through shipments the rate is 2 cents, which makes up 
the 2 cents difference between the Hood River and Dee rates. 

It is evident that any gain due to a lower freight rate is dependent upon the distri- 
bution of the output. If all of the cut goes to Omaha and Chicago rate points there 
would be no difference between Dee and the coast mills. If all of the cut goes to 
Denver rate points the gain on shipments from Dee over the cbast would be 4 cents 
per 100 pounds, or approximately |l per thousand feet. If shipped to both markets 
the gain will be in proportion to the grade of lumber shipped to each market. On 
clears shipped to the Denver market the gain would be about 80 cents per thousand 
feet, and on-rough common $1.30 per thousand feet. The gain is therefore not only 
dependent upon the distribution of the output, but upon the distribution of the 
grades of lumber produced. Due to the number of factors to be considered the de- 
termination of the gain from advantageous freight rates is a difficult matter. The cut 
of the mill has been distributed by grades over the market that the mill can reach 
without a differential against them and the gain computed on that basis. This gain 
amounts to 20 cents per thousand feet, which has been distributed over the lumber 
values by grades. 

The appraisal is based upon the timber being manufactured at the sawmill at Dee, 
Oreg., the use of the present railroad up the West Fork of Hood River, the construction 
of a railroad to and through the sale area. 

INVESTMENT. 

Railroads. — The railroad from the sawmill at Dee to the present terminus is of 
standard construction throughout with light curvature and gradient. This road will 
tap approximately one billion feet of private and national forest timber on the West 
Fork of Hood River, Lake Fork and Divers Creek. Depreciation is based upon this 
amount of timber. The investment is the present value of the road and a residual 
instead of a wrecking value is allowed at the end of 12 years. 

From the terminus of the present line the railroad to the sale area as surveyed is 
on the south side of the valley, well above the river to avoid rock cliffs and canyons, 
entering the forest at an elevation of 2,050 feet. This portion of the road will not pass 
through timber. A great deal of rock will be encountered in the construction of this 
portion of the railroad. Several canyons are crossed, necessitating long and high 
trestles. The construction as a whole is heavy, with a correspondingly heavy cost. 
From the forest boundary the road will continue up the valley into sec. 26, with 
spurs into sees. 13 and 23, 'T. 1 S., R. 8 E. 



CONSOLIDATION" OF FOREST LANDS IN OREGON. 



15 



To tap the timber on the higher elevations switchbacks or an incline must be used. 
The appraisal plan for reaching the timber on the higher elevations is to construct an 
incline from the main line to the high lines on the slopes. The high lines to be con- 
structed through sees, i, 12, 13, and 14, T. 1 S., R. 8i E., sees. 6 and 7, T.1S., R.9E., 
and through. sees. 24, 25, 26, 35, and 36, T. 1 S., R. 8 E., Willamette meridian, and 
loading spins to be constructed at landings. With this development the greater part 
of the timber can be yarded direct to the cars. The unit cost of construction south 
of the forest boundary is less than outside. On the patented land inside the forest 
construction will be lighter than on forest land, the railroad being on the valley floor 
or on gentle slopes. The new construction necessary to log both private and national 
forest timber will be 23 miles, exclusive of temporary spurs, of which there are 6 miles. 

The railroad from the terminus of the present railroad to and inside the national 
forest will tap approximately 480,000,000 feet of timber; depreciation is based upon 
this amount. The roadbed, ties, and bridges have no value at the end of the sale; 
steel and fastenings have a wrecking value for removal and use elsewhere. 

Railroad equipment. — The equipment for the transportation of logs from woods to 
mill to consist of 1 direct connected locomotive for main line haul, 2 general locomo- 
tives for spur haul, and 60 connected logging trucks equipped with air. With the 
exception of one locomotive the present railroad equipment of the Oregon Lumber Co. 
is too small in size and capacity for the economical transportation of logs from the sale 
area and the appraisal contemplates the purchase of new equipment. 

Logging-. — The timber in the valley bottom is on patented land; the national forest 
timber within the sale area is as a rule on the slopes or at the heads of streams. Logging 
the privately owned timber can be done at a low cost, as it stands on good ground. 
Logging national forest timber will be a different proposition; the timber standing on 
the slopes, which in places are broken by cliffs and rock slides, will have a higher 
breakage than that in the valley, yarding distance will be greater, roading will be nec- 
essary to reach timber where railroad construction cost is prohibitive. Railroad con- 
struction will be heavier, as the roads will be on the slopes above the valley floor. All 
these factors make for higher logging costs. 

% The method of logging by which the timber can be removed economically is by the 
combination of overhead and ground yarding, the equipment to consist of 3 overhead 
yarders, 1 yarder, 1 roacler, 3 loading engines, and 1 incline engine. The output per 
annum is placed at 40,000,000 feet in an operating season of nine months. 

The stand of timber, national forest and private, is 480,000,000 feet, and the output 
40,000,000 feet per annum; therefore it will require 12 years to log the timber embraced 
in the appraisal. 

The following is a tabulation of investments: 

Existing main line railroad (5 miles). 



Item. 


Present 
worth. 


Deprecia- 
tion, 12 
years. 


Residual 
value. 


Average 
investment. 




$22, 000 
20, 000 


$10, 650 
10, 800 


$11,350 
9.200 














Total 


42, 000 


21,450 20.550 


$32, 168 











Logging plant railroad, under rails (S3 miles). 



Years. 


Invest- 
ment at 
begin- 
ning of 
year. 


Depre- 
ciation 
during 
year. 


Addi- 
tional 
invest- 
ment at 
end of 
year. 


Average 
invest- 
ment. 


Years. 


Invest- 
ment at 

begin- 
ning of 

year. 


Depre- 
ciation 
during 
year. 


Addi- 
tional ' A vpraCT o 

±U\t»U 1 • . 

ment at „Jz? 
end of 1 ment - 
year. [ 


1 


$53, 850 
57, 863 
- 59,347 
53, 831 
50, 815 
43, 374 
40, 808 


$4, 487 
7,141 

10,016 
9,216 


$8, 500 
8,625 
4,500 

fi. 200 




8 ' $47,366 

9 43,345 

10 36,042 

11 30,233 

12 15,124 


$9, 471 
10, 833 
12,009 
15, 109 
15, 124 


$5,459 ! 


2 




3,530 1 


3 




6,200 


4 






5 


9, 991 2, 550 
8,391 j 5,825 
7,862 14.420 






6 










Total.. 531.998 


119,650 65.800 


$44, 333 





















16 



CONSOLIDATION OF FOREST LANDS IN OREGON. 

Logging plant — Rails and fastenings. 



Years. 


Invest- 
ment, be- 
ginning 
of year. 


Deprecia- 
tion dur- 
ing year. 


Additional 
invest- 
ment at 

end of year. 


Wrecking [ Average 
value % investment. 


1 


$33, 350 
41,050 
48,336 
52, 208 
49, 601 
46, 994 
48,517 
53, 985 
57, 005 
53,546 
50,087 
46, 628 


$1,500 
1,914 
2,328 
2,607 
2,607 
2,607 
2,792 
3,180 
3,459 
3,459 
3,459 
3,459 


$9, 200 
9,200 
6,200 






■ 


3 

















6 


4,130 
8,260 
6,200 






7 






8 






9 






10 








11 








12 
















Total 


581, 307 


33,371 


43, 190 


$43, 169 


$48, 442 







Locomotives and trucks. 



Years in use. 


Initial 
investment. 


Deprecia- 
tion, 12 
years. 


Wrecking 
value. 


Average 
investment. 


12 


$81, 250 


$65, 344 


$15, 906 


$56,259 







Investment includes present worth of one locomotive in use by mill company. 

Donkey engines. 



Years. 


Invest- 
ment, be- 
ginning 
of year. 


Deprecia- 
tion each 
year. 


Additional 
invest- 
ment at 

end of year. 


Wrecking 
value. 


Average 
investment. 


1 


$47, 000 
42, 910 
38, 820 
34, 730 
30, 640 
26,550 
22, 460 
18, 370 
14,380 
10, 190 
42, 100 
38,010 


$4, 090 
4,090 
4,090 
4,090 
4,090 
4,090 
4,090 
4,090 
4,090 
4,090 
4,090 
4,090 








2 








3 








4 








5 








6 








7 








8 








9 








10 


$36, 000 






11 






12 








1 




Total 


366, 060 


49, 080 


36, 000 


$33, 920 


$30, 505 







Camps. 



Years in use. 


Initial 
invest- 
ment. 


Deprecia- 
tion, 12 
years. 


Wrecking 
value. 


Average 
invest- 
ment. 


12 


$7, 800 


$7, 200 


$600 


$4,500 





CONSOLIDATION OF FOREST LANDS IN OEEGON. 

Blocks and tools. 



17 



Years. 


Invest- 
ment at 
beginning 
of year. 


Deprecia- 
tion during 
year. 


Additional 

invest- 
ment, end 
of year. 


Wrecking ^ er ?f e 

value mvest- 
vaiue. ment; _ 


1 


$6, 120 
4,720 
3,320 
4,920 
3,520 
3,420 
5,020 
3,620 
2,220 
3,820 
2,420 
2,320 


$1,400 
1,400 
1,400 
1, 400 
1,400 
1,400 
1,400 
1,400 
1,400 
1,400 
1,400 
1,400 






2 






3 


S3, 000 




4 


1 


5 


1,300 
3,000 




6 




7 




8 




9 


3,000 




10 




11 


1,300 


12 










54, 440 


16, 800 


.11,600 ! $920 : $4,533 



Summary — Logging-plant investment. 



Initial 
invest- 
ment. 



Yearly j Total 
deprecia- deprecia- 
tion, tion. 



Addi- 
tional in- 
vestment. 



Wreck- 
ing 
value. 



Average 
invest- 
ment. 



Main line railroad 

Ra Iroad West Fork construction 
West Fork, rails and fastenings . . 

Locomotives and trucks 

Donkey engines 

Camps 

Blocks and tools 

Total 



S42, 
53, 
33, 
81, 
47, 



81, 787 

9,971 
2,781 
5,445 
4,090 
600 
1.400 



$21, 450 
119, 650 
33, 371 
65, 344 
49, 080 
7,200 
16, 800 



865,800 
43, 190 



$20, 550 



36, 000 
11,666 



43, 169 

15, 906 

33, 920 

600 

920 



$32, 168 
44, 333 
48,442 
56, 259 
30, 505 
4,500 
4,533 



271, 370 



26, 074 



312,895 



156, 590 



115,065 



220, 740 



Logging cost. 



Items. 


C. 


M. 


G. 


T. 


R. 


D. 


T. 


Woods: 


$0. 638 

1.050 

.290 

.063 

.300 
.150 

.041 












$0. 638 














1.050 


Loading 












.290 


Laniings 












.063 


Railroad: 

Operation 












.300 


Fuel 












. 150 


Temporary spurs 












.041 


Maintenance: 

Roadbed 


$0. 160 
.040 
.085 
.067 
.090 

.240 
.020 
.035 










. 160 


Locomotives 












.040 


Trucks 












.085 


Donkev engines 












.067 


Logging equipment 












.090 


Supplies: 

Wire rope 












.240 


Oil and waste 












.020 


General 












.035 


Insurance and taxes: 






$0. 060 
.080 






.060 


Taxes 












.080 


F. S. regulations: 

Snags, fire lines and slash burning 








SO. 108 




.108 


General expense: 

Supervision 






$0. 260 
.050 




.260 


Miscellaneous 












.050 


Depreciation: 










$0. 136 
.102 
.069 
.015 
.035 
.249 
.045 


.136 














.102 














.069 


Camps 












.015 


Tools and blocks 












.035 


Railroad construction 












.249 


Main line 












.045 
















Total 


2.532 


.737 


.310 


.140 


.108 


.651 


4.478 







55495—16- 



18 



CONSOLIDATION OF FOREST LANDS IN OliEGON. 



Milling. — The old mill at Dee, Oreg., was destroyed by fire about four years ago. 
The present mill is built on the site of the old one and has been in operation two 
years. It is a modern, electrically driven, individual motor band mill, with an 
annual capacity of 30,000,000 feet, which is to be increased to 40,000,000 feet. The 
power is generated in a hydroelectric plant at the mill. The available flow of Hood 
Eiver is given at 220 second-feet. The power plant requires 312 second-feet. Owing 
to this lack of water, the mill is shut down on an average of two hours each day wait- 
ing for the storage basin to fill. The irrigation associations of the Hood River Valley 
obtaining water from the East Fork of Hood River filed suit to restrain the Oregon 
Lumber Co. from using the water, claiming it was needed for irrigation. The court 
held that irrigation is the highest use for the water, and that the company could install 
a steam plant and utilize the mill waste to generate power, while the irrigationists 
had no alternative. The company is installing a steam-electric plant and increasing 
the mill capacity to 40,000,000 feet per annum by installing additional machinery. 

Investment in milling plant is the depreciated value of the present plant plus the 
new equipment to be added. 

Milling plant investment. 



Site 

Pond and dam 

Buildings 

Sawmill machinery 

Planing-mill machinery 

Power plant 

Yard and equipment... 

Dry kilns 

Fire protection 

Machine shop 

Plans and specifications 

Total 



Present 
worth 
and new 
equip- 
ment. 



I Ml) 



214, 810 



Deprecia- 
tion. 



.$7, 200 
22, 450 
55, 200 
14, 900 
28, 200 
27, 200 
14, 300 
10, 200 
2,600 
7,650 



189, 900 



Wreck- 
ing 
value. 



S3, 090 



10,100 

2,100 

7,000 

1,150 

590 

600 

280 



24, 910 



Average 
invest- 
ment. 



$127, 772 



The present worth of the milling plant is the value at the beginning of the operation 
on the sale area. The total life of the mill is 15 years, 3 of which are prior to and 12 
during the life of the sale. The plant has a wrecking instead of a residual value. 

Total investment, logging and milling plant. 



Item. 


Initial 
invest- 
ment. 


Yearly 
deprecia- 
tion. 


Total 
deprecia- 
tion. 


Addi- 
tional 

invest- 
ment. 


Residual 

and 

wrecking 

value. 


Average 
invest- 
ment. 




$271,370 

214, 810 

15, 000 

88, 000 


$26, 074 
15, 825 


$312, 895 
189,900 


$156, 590 


$115,065 
24, 910 
15, 000 
88, 000 


$220, 740 




127, 772 






15, 000 




















Total 


589, 180 


41, 899 


502, 795 


156,590 


242,975 


451,512 







Working capital. 



Average 
invest- 
ment. 



Accounts receivable 
Advance stumpage. 

Supplies 

Cash 

Total 




S4,000 



CONSOLIDATION" OF FOREST LANDS IN OREGON, 
Milling costs. 



19 



Item. 


C. 


M. 


G. 


T. 


D. 


Total. 




$2.25 










$2.25 




$0.56 








.56 






$0.50 






.50 








$0.20 




.20 


Selling 






.57 


.57 
















2.25 


.56 


1.07 


.20 




4.08 




.61 












$0.35 
.05 






4.69 
.35 












.05 
















.40 


5.09 



Milling cost less depreciation $4. ( 

Logging cost less depreciation 3. i 



8.52 



Depreciation, milling .■ 40 

Depreciation, logging 65 



Douglas fir and noble fir. — The Douglas fir is admirably suited for the manufacture 
of No. 1 common lumber of all sizes and patterns, with a fair percentage of select 
common. The quality inspection shows an average of 10 J per cent of No. 2 clear and 
better lumber. This amount can be produced with reasonable care in manufacture. 
It is true, however, that in texture, mellowness, and color these upper grades will not 
be equal to those from timber in the coast region. 

The small percentage of noble fir is included with the Douglas fir. The quality 
averages good, the best of any species on the area; here and there occur many single 
specimens representing the typical growth in volume and quality. It appears that 
in places noble fir has been tallied and computed as amabilis fir. 

Grades of lumber based on No. 1 logs, 3 per cent; No. 2 logs, 28 per cent; No. 3 
logs, 69 per cent. 

No 1 V. G. flooring, 1 by 4 inches, 1.2 per cent, at $25.10 $0. 30 

No. 2 V. G. flooring, 1 by 4 inches, 2.8 per cent, at $22.10 62 

No. 2 F. G. flooring, 1 by 4 inches, 1 per cent, at $13.80 14 

No. 2 clear and better finish, 2.5 per cent, at $25.20 63 

No. 2 clear and better siding and rustic, 3 per cent, at $16.10 48 

No. 3 clear siding and rustic, 3.5 per cent, at $12.10 42 

Car sills, No. 1 common, 5 per cent, at $14.50 73 

Select common, 4 per cent, at $13 52 

Timbers, No. 1 common, 40 per cent, at $10.30 4. 12 

No. 1 common dimensions, 15 per cent, at $9 .40 1. 41 

No. 1 common boards and shiplap, 10 per cent, at $10.40 1. 04 

No. 2 common, 8 per cent, at $7 56 

No. 3 common, 4 per cent, at $5 20 



11.17 



Average value $11. 17 

Overrun 1.48 



Discounts. 



Underweights. 
Slabs 



12.65 
.17 

12.48 
.90 
.20 



Milling cost, less depreciation 4. 69 

Logging cost, less depreciation 3. 83 



$13.58 



8.52 



Margin ^ 5. 06 



20 



CONSOLIDATION" OF FOREST LANDS IN OEEGON. 



Depreciation, milling $0. 40 

Depreciation, logging .65 



1.05 

The Mount Hood Railway and the Oregon Lumber Co. use slabs from the mill for 
fuel in their locomotives. Surplus slabs are sold at the town of Hood River and in 
the valley; this surplus is not large, as the locomotives require most of the slabs pro- 
duced. The price received for slabs could not be learned, therefore their value is 
computed on a fuel-value basis, which has been placed at $0.20 per thousand feet. 

The overrun value in this appraisal is 13.2 per cent of the average value of the 
product; the overrun in volume, 15 per cent. The product being cut into heavy 
material and the taper of logs quite large it is believed that this overrun is justified. 
The gain from overrun in Douglas fir is $1.48, from slabs $0.20, from underweights 
$0.90 per thousand feet, a net gain of $2.58 per thousand feet, which added to the 
average value of $11.17 makes an average value of $13.75 from which $0.17 per thousand 
feet must be deducted for discounts, leaving an average value of $13.58 per thousand 
feet log scale. 

Discounts. — Discounts are based upon two-thirds of the value of the cut, being dis- 
counted at 2 per cent. This makes a discount of 1.33 per cent on the total cut, which 
is the basis of the discount of $0.17 deducted from the average value plus overrun 
of $12.65 per thousand feet. 

Western white pine. — This species comprises 1.1 per cent of the total stand, it is of fair 
size and quality, and is estimated to cut 20 per cent No. 2 shop and better. 

B and better, 2 per cent at $45 $0. 90 

C select, 3.5 per cent, at $40 1. 40 

D select, 1.5 per cent, at $27. . .■ 40 

No. 1 shop, 4 per cent, at $30 1. 20 

No. 2 shop, 9 per cent, at $20 1. 80 

No. 3 shop, 3 per cent, at $14 42 

No. 1 common, 4 per cent, at $24 96 

No. 2 common, 30 per cent, at $19 5. 70 

No. 3 common, 35 per cent, at $14 4. 90 

No. 4 and 5, common, 8 per cent, at $10 80 



18.48 

The cost of operation is higher than in the other species, due to the fact that this 
species does not occur in any body, but scattered singly throughout the area, making 
it necessaxy to rehandle the product in small quantities, which is an expensive opera- 
tion. 

Average value $18. 48 

Overrun 1. 52 

20. 00 
Discounts 26 

19.74 
Slabs 20 

■ — - $19. 94 

Cost of production, less depreciation 10. 00 

Margin 9. 94 

Hemlock and amabilis fir. 



Grade. 


Per cent 
of each. 


Value 
per thou- 
sand. 


Propor- 
tional 
value. 




40 
35 

25 


$9.40 
10.40 
6.00 


93.76 




3.64 




1.50 












8.90 











CONSOLIDATION" OF FOREST LANDS IN OREGON. . 21 

Average value $8. 90 

Overrun 1. 17 

10.07 
Discounts 13 

9.94 

Underweight 1. 10 

Slabs 20 

$11. 24 

Milling, less depreciation 4.69 

Logging, less depreciation 3. 83 

8. 52 



2.72 



Depreciation, milling 40 

Depreciation, logging 65 



1.05 

Overrun value is $1.17, underweights $1.10, slabs $0.20 per thousand feet, a net gain 
from these sources of $2.47 per thousand feet, which added to the average value of 
lumber of $8.90, makes a total value of $11.37, from which $0.13 must be deducted, 
making a net value of $11.24 per thousand feet log scale. 

Western red cedar. 

3 per cent No. 2 clear and better finish, at $35 $1. 05 

80 per cent No. 1 common boards and shiplap, at $10.40 8. 32 

17 per cent Nos. 2 and 3 common, at $6 1. 02 

10.39 

Average value $10. 39 

Overrun 1. 37 

11.76 
Discounts 16 

11.60 

Underweights 1. 25 

Slabs 20 

13.05 

Milling cost less depreciation 4. 69 

Logging cost less depreciation 3. 83 

8.52 

Margin 4. 53 

Investment and profit margin. — Total average investment in logging and milling 
plant, logs and lumber in stock, is $451,512, on which a margin of 20 per cent is allowed, 
or $90,302 per annum, which prorated over a cut of 40,000,000 feet per annum is $2.26 
per thousand feet. 

Average investment in accounts receivable, stumpage, supplies, and cash is $84,000, 
on which 8 per cent profit margin is allowed, or $6,720, which prorated over a cut of 
40,000,000 feet per annum is $0.17 per thousand feet. The combined profit margin 
is $2.26 plus $0.17, or $2.43 per thousand feet log scale. Depreciation is $0.65 on 
logging plant and $0.40 on milling plant, a combined depreciation of $1.05 per thousand 
feet log scale. Profit margin and depreciation is $3.48 per thousand feet. 



22 



CONSOLIDATION OF FOEEST LANDS IN OEEGON. 



Selling 
price. 



Operat- 
ing cost. 



Margin. 



(1) Douglas fir and noble fir 

(2) White pine 

(3) Western red cedar 

(4) Western hemlock and amabilis fir 

(1) 73.3 per cent by $5.06=13.71 

(2) 1.1 per cent by 9.94= .11 

(3) 2.5 per cent by 4.53= .11 

(4) 23.1 per cent by 2.72= .63 

4.56 



$13. 58 
19.94 
13. 05 
11.24 



$8.52 
10.00 
8.52 
8.52 



85. 06 



4.53 

2.72 



Depreciation $1.05 plus profit $2.43=$3.48-h4.56=$0.7631. 

(1) $5.06 by $0.7631=$3.86 

(2) 9.94 by .7631= 7.58 

(3) 4.53 by .7631= 3.46 

(4) 2.72 by .7631= 2.07 

Prices 
approved. 

(1) $5.06-$3.86=$1.20, Douglas fir stumpage $1. 20 

(2) $9.94-$7.58=$2.36, western white pine stumpage 2. 50 

(3) $4.53 -$3. 46=$1.07, western red-cedar stumpage 1. 20 

(4) $2.72-$2.07=$0.65, western hemlock and amabilis fir stumpage 50 

Cedar poles. — The major portionof the cedar stand is of low quality, varying in tree 
sizes from small poles up to 5 feet in diameter. It appears that there is, on the 
lower elevations, small cedar timber that is more valuable for poles and piling than 
for sawtimber. While no detailed estimate was made of the percentages of sizes, the 
number of each length and size as set out below is the result of several acre estimates 
taken at random. 



Group 1 

Group 2 — 
Group 3 

Total 



Poles. 


Length. 


Number. 


Feet. 


1,000 


20 


1,500 


25 


3,000 


30 


3, 000 


35 


2,000 


40 


1,500 


45 


1,000 


i 50 


13, 000 





Dimensions. 



Market 
value. 



I CcTttS 

6-inchtop = 20,000 linear feet 5i 

6to7inchtop= 37,500 linear feet 6j 

7-inch top = 90,000 linear feet : 8 

7 to 8 inch top= 105,000 linear feet i 9 

7 to 8 inch top= 80,000 linear feet | 94 

7 to 8 inch top= 67,500 linear feet | 10 

7to8inchtop= 50,000 linear feet I 11 

450,000 linear feet I 



1 And up. 

13,000 poles, average length 35 feet, representing approximately 800,000 feet log 
scale. 

Average values. — Group 1, $0.0755 per linear foot=$0.075; group 2, $0.0927 per linear 
foot=$0.090; group 3, $0.1042 per linear foot=$0.105. 

Pole costs. — Cutting and peeling, $0.0125; skidding and decking, $0.0275; loading 
and railroad haul to Dee, $0.0075; reloading at Dee for final shipment. $0.0075; 
general expense, $0.0050; $0.06 per linear foot for 40 feet and under; one-half cent 
higher for 45 feet and up. 



Value. 


Per cent. 


Cost. 


Margin. 


Profit. 


$0. 075 


33 


SO. 06 


$0. 015 


80.01 


.090 


41 


.06 


.030 


.01 


.105 


26 


.055 


.040 


.01 



Stump- 



Group 1 
Group 2 
Group 2 



SO. 005 
.020 
.030 



Average stumpage price for 450,000 linear feet, $0.01765; total value, $7,942.50. 



CONSOLIDATION OP FOREST LANDS IN OREGON. 23 

The selling prices per linear foot are the most relable that could be obtained for the 
years of 1914-15, and three months of 1916. 

Applicant. — The applicant J. W. Palmer, of Hood River, Oreg., was engaged in 
the milling business at Blaine, Wash., several years ago. Mr. Palmer has had a wide 
experience in lumber manufacture and selling in Minnesota and the south. He is at 
present living on his ranch near Hood River. He stated that he and his associates 
have an option to lease or purchase the Oregon Lumber Co.'s mill at Dee, Oreg., but 
have not decided which they will do, but in all probability they will buy the plant. 
In conference with the applicant, Mr. West, general manager of the mill at Dee, has 
either been present or his name brought into the conversation. Mr. West has made 
the surveys for the railroad by which the timber will be tapped. 

Fire lines. — A fire line should be constructed around the exterior boundaries of the 
sale, these lines to be constructed as logging progresses, and should be built in accord- 
ance with contract specifications. All dead trees should be felled as logging pro- 
gresses. 

Administration. — The sale should be in charge of a man who has had experience in 
scaling and sale administration. The manner in which the timber will be opened 
up will determine the number of scalers required; if the cut is concentrated so that 
the yarders are working close to each other, one man can handle the scaling, otherwise 
two will be necessary. The Oregon Forest has not a man at present that could be 
assigned to scaling or administration. Provisions should be made for increasing the 
force by two men. 

Management. — Provisions for reforesting the cutover area by the methods of broad- 
cast slash burning and reseeding by the reservation and preservation of virgin areas 
and single totally defective and other trees is not as simple as in most Douglas fir types. 
The most serious factors in leaving seed trees or groups of seed trees in the nature 
stand are that, first, the timber in the Douglas fir type is tall and of scanty crown, 
making it very susceptible of windthrow, aside from being very poor for producing a 
satisfactory volume of seed. Again, selection of seed groups on points and ridges, 
where the timber is short and reasonably safe from windthrow, the stand is, in most 
instances, made up of thirty to fifty per cent of hemlock. 

It is not believed that there is a sufficient quantity of totally defective trees for 
reseeding the area. There is, however, a fair number of veteran, wolf trees that will 
not qualify as merchantable. These trees occur mostly around the edges of rock slides, 
but many are found here and there throughout the area. 

The stand outside the sale boundary is made up of a stunted growth of hemlock, 
Douglas fir, amabilis fir, and noble fir. 

It is believed that the best plan to follow would be to reserve areas on points and 
ridges where the timber is reasonably safe from windthrow, protect all unmerchantable 
green trees, and reserve in some cases partially defective or other single trees that 
would be safe from windthrow. These three safeguards together with the stand 
outside the sale boundary will be sufficient to reseed the area in case the reproduction 
that will naturally follow the slash burning is ever destroyed. 

The water flow is an important factor in this region since there are large areas in both 
what is locally designated as upper and lower Hood River Valley dependent upon 
irrigation for the successful raising of tree fruits and berry crops. It is not believed 
that the removal of the Government timber will in any way affect the stream flow. 
The opinion is based upon two factors: (1) approximately 50 per cent of the drainage 
area will not be logged. This area supports a fairly heavy stand of unmerchantable 
timber, practically all of which is located on the heads of the several streams forming 
the main river. (2) Ladd Creek, the principal tributary of the West Fork of Hood 
River is a glacial stream. Also, McGee has its source near the perpetual snow beds 
of Mount Hood. 

W. T. Andrews, Logging Engineer. 
L. A. Nelson, Lumberman. 

Mr. Greeley. I might leave with the committee, for examination 
by members of the committee, a complete set of maps, estimate 
details, and valuation appraisals on a watershed in Idaho. They 
will give the entire record from the start, including the estimates, 
topographic maps, and the method of arriving at the value of the 
stumpage. 



24 CONSOLIDATION OF FOREST LANDS IN OREGON. 

STATEMENT OF HON. C. N. McARTHUR, A REPRESENTATIVE 
FROM THE STATE OF OREGON. 

Mr. McAethur. Mr. Chairman and gentlemen of the committee, 
this measure is of great importance to the city of Portland, which is 
located in the congressional district which I have the honor to repre- 
sent. Portland is a great city of nearly 300,000 inhabitants and has 
gone to considerable expense to provide itself with a wholesome and 
bountiful supply of pure mountain water. This water is taken 
from Bull Run, a stream situate in that portion of the Oregon National 
Forest, which was formerly known as the Bull Run Forest Reserve, 
and which was set aside by Executive proclamation a number of 
years ago. The intake for the city water supply is approximately 
30 miles east of Portland, the water being piped from this intake 
to the city's reservoirs. The Bull Run Forest Reserve, which includes 
more than six townships, is situate in the eastern end of Multnomah 
County and in the northeastern corner of Clackamas County. The 
actual Bull Run watershed is considerably smaller in area than the 
reserve, but it has been thought best to include the areas outside 
the watershed within the limits of the reserve as the growth of the 
city will, within a few years, require more water than can be obtained 
from Bull Run, so it will be necessary to tap some of the streams that 
flow in other directions from the summit of the watershed. The 
question of maintaining our water supply is vitally affected by this 
bill for the reason that there are approximately 8,000 acres of privately 
owned land within the reserve at the present time. It is true that 
only a small portion of this 8,000 acres actually lies within the Bull 
Run watershed, but there is nevertheless a strong desire on the part 
of the residents of Portland that all of this 8,000 acres be acquired 
by the Government and maintained in perpetual public ownership. 
The major portion of this 8,000 acres of land is owned by various lum- 
bering and logging companies, the principal owner being the Bridal 
Veil Lumbering Co. Thus far the operations of this company have 
not seriously affected the water supply of the city and the company 
has shown its willingness to deed over to the Government its logged- 
off land areas within the reserve. 

The Government at present owns a considerable amount of timber 
land within the reserve, but without the limits of the watershed, 
while the Bridal Veil Lumbering Co. owns other timber lands of 
equal value within the watershed. Officials of this company have 
conferred with the water commissioner of the city of Portland and 
with representatives of the Forestry Service, and have agreed upon 
certain exchanges which will enable the Government to take over 
lands within the watershed in exchange for lands ourside the water- 
shed upon the basis of equal value. The only obstacle in the way 
of the consummation of this exchange is the one of legal authority, 
and it is for this reason that the bill in question is being pressed at 
this time. The bill vests in the Secretary of Agriculture — the 
governing authority of the Forest Service — the right to make such 
exchanges as he may deem proper and in accordance with the public 
welfare. I feel quite certain that no man occupying this position 
would ever abuse the trust imposed in him by exchanging valuable 
timber lands for lands of less value and, therefore, feel that there is 
no way by which the public could be swindled or defrauded by the 



CONSOLIDATION OF FOREST LANDS IN OEEGON. 25 

passage of this bill. On the other hand, I regard it as imperative 
that some measure of this kind be enacted in order that there be no 
further logging operations, or no settlement of any character within 
the Bull Run watershed. These logging operations and the sewage 
and refuse which naturally follow in the wake of settlement would, 
in time, pollute the purity of our water which is second to none in 
the United States. We desire to maintain not only the purity, but 
the sufficiency of this water supply, but it is a well-known fact that 
if land is once logged, the supply of water will not be as great as if 
it were left in its natural state. The presence of trees on a watershed 
tend to preserve the snow fall of the winters and equalize the dis- 
tribution of water. When an area has been denuded by logging 
operations, the winter snows melt rapidly upon the approach of 
summer weather and flood conditions ensue. The promise of the 
Bridal Veil Lumbering Co. to deed over to the Government its logged 
off lands means that these lands can be reforested and that within 
a few years there will be an abundant covering of second growth 
timber which will, in a measure, protect the headwaters of the small 
streams flowing into Bull Run. 

In addition to the 8,000 acres of privately owned land within the 
Bull Run Forest Reserve, there are approximately 11,360 of Oregon 
& California Railroad grant lands included within the exterior limits. 
These lands are withheld from settlement for two years by virtue of 
the Oregon and California land grant bill, recently signed by the 
President, but I am preparing a general bill providing that they be 
taken over by the Government and maintained in public ownership. 
There has been an effort on the part of speculators and their repre- 
sentatives to acquire these and other public lands in the Oregon and 
California grant for selfish purposes, but I am confident that Congress 
will take the necessary action to protect public interests in this 
matter. 

The pending bill is of great importance to the people of the city 
of Portland, and I trust that you will give it your favorable con- 
sideration and report it out at an early date. The Forestiy Service 
is heartily in favor of this measure and, while it is apparently local in 
character, it is of great importance in that it affects the health and 
happiness of the people of one of our great cities. I do not know of 
any local bill that has come before this Congress that is of such great 
concern as the one now before you. 

(Thereupon the committee proceeded to the consideration of 
executive business.) 







Wgggm 







LIBRARY OF CONGRESS 



002 816 240 P 



